Digiweb strikes deal to take on Smart’s customer base

6 Nov 2009

Bondholders in Irish alternative telecoms operator Smart Telecom yesterday backed a deal to emerge from Examinership (i.e. the process whereby the protection of the courts is obtained to assist the survival of an Irish limited company) by allowing rival firm Digiweb to take control of its customer base. The Irish Independent newspaper reports that a number of the operator’s bondholders, including US institutions Avenue Capital and Plainfield Asset Management, have security over Smart’s assets. Between them they have 60% of the company’s debt. It is understood the company has debts of about EUR90 million (USD134 million) and has been in breach of its covenants since 2007. Yesterday Smart Telecom and Digiweb confirmed that the two companies have a combined subscriber base of 46,500 customers along with 48,000 webhosting, domain and data centres. They added that both telcos are EBITDA positive, with annual revenues of EUR40 million and 150 employees.

Ireland, Digiweb Ireland